A project to create a £100million reservoir has been scrapped by Bristol Water after it decided it was ‘no longer needed’.

The company has announced it will no longer proceed with the nine billion-litre reservoir in Cheddar – which earned planning permission in 2014 – after proposing plans to reduce leakage by six million litres a year instead.

Bristol Water has also committed to helping reduce demand by encouraging better water use.

The Cheddar Two reservoir project was put on hold in 2015 when the Government’s Competition and Markets Authority said Bristol Water had not demonstrated the need for a second reservoir.

The company’s new commitments are part of a five-year draft business plan which highlights five key priorities, including creating affordable bills, keeping water flowing, helping communities, saving water and improving customer service.

Cheddar Reservoir.

Head of water resources and environment at Bristol Water, Patric Bulmer, said the company’s figures on population growth and climate change have ‘moved on significantly’ since the reservoir project was proposed in 2013.

He added: “Our planned reduction in leakage and work to improve water efficiency means we no longer believe the reservoir is needed.

“We will be looking at ways to manage our water better before we develop new supplies, which is at the heart of our decision on Cheddar Two.

“This commitment will keep customers’ bills as low as possible over the next five years, with predicted bills in 2025 being lower than today before inflation.”

Bills in 2020 are predicted to be £192 and by 2025 they would cost £188 before inflation.

Bristol Water recently completed a 30km pipeline from Cheddar to Barrow Gurney which cost around £27million and took 18 months to finish.

The Southern Resilience Scheme was another major project for the business to provide a more secure water source to more than 300,000 people and businesses.

Wells MP James Heappey, whose constituency includes Cheddar and Axbridge, said: “People will be breathing a sigh of relief that there will not be any more disruption by Bristol Water.”

People are being asked to have their say on the new plans at www.bristolwater.co.uk/myviews